As this initiative has gained steam, a group of almost 20 exchanges has issued a contingency plan, which details how they would handle a split in an attempt to allow a free market decision on a dominant software.
Other smaller trading firms and individual investors noted a similar sentiment in the wake of recent news.
Tax-exempt accounts include Individual Retirement Accounts (IRAs) and other qualified accounts such as 401(k) plans, SEP IRAs, 403(B) accounts and profit sharing plans.
* * * The descriptions of federal income tax matters contained in the Grantor Letter are for general informational purposes only and do not address all possible tax considerations that may be material to a former IIT shareholder regarding distributions received upon closing of the Merger or ownership of units of the Liquidating Trust and do not constitute legal or tax advice.
Series LLCs were first authorized in Delaware in 1996. states that allow LLCs to create separate series that will be respected for liability purposes.
While other states have been relatively slow to adopt series LLC statutes, several have done so in the last several years. Under the laws of these states, the assets of a series are separate and cannot be used to satisfy the debts of another series.
The trustee or custodian will need this information to prepare your annual account statement.
In conversation with Coin Desk, a wide range of traders are reporting they are preparing for a potential split by pulling capital from the market or otherwise placing bets that the digital currency's price will decline in the short term.
The development is the latest that stems from the increasing discussion about whether bitcoin could see a "hard fork", a process by which new software could be introduced that alters the existing rules of the network.
As such, the tax consequences to a unitholder generally will be similar to those that would be experienced if the trust were treated as a partnership.
As with a partnership, items of income, gain, loss, deduction, and credit derived from the Liquidating Trust will be taxed at the unitholder level, and the Liquidating Trust will not be taxed (i.e., no “double taxation”).